According to Coindesk , March 12, 2025 – LBank ( lbank.com ) , the world’s leading cryptocurrency exchange , officially announced the establishment of a $100 million contract risk protection fund to strengthen transaction security, maintain market fairness, and provide users with a more secure trading environment. The fund is designed to cope with abnormal market fluctuations, ensuring that users can still trade with confidence in drastic market conditions, while consolidating LBank’s leading position in risk management and industry innovation.
Fund Details
When the K-line price deviates from the reasonable market price by more than 2% within 1 minute and quickly pulls back, the contract risk protection fund is activated. This mechanism applies to the top 100 contract trading pairs in Coinmarketcap, including $BTC , $ETH and $SOL , to ensure coverage of highly liquid assets.
Affected traders who experience forced liquidation or stop-loss losses due to drastic price fluctuations will receive 120% compensation, further demonstrating LBank’s commitment to user protection and market integrity.
Reasonable market price reference: Comprehensive value judgment of the top five derivatives rankings on Coinmarketcap.
Pin-in compensation mechanism: eligible users will receive 120% of their losses, credited to their spot accounts in the form of USDT within 48 hours, minimizing disruptions and allowing them to continue to be active in the market.
Additional reward airdrop: In addition to personal compensation, every time a sharp price fluctuation occurs, LBank will take out an additional 10,000 USDT from the official fund pool for airdrop, which will be distributed to all holders of the affected trading pairs according to their holding ratios and will be distributed to the users spot account in the form of USDT within 48 hours.
Reshape the risk control system of contract transactions
LBank’s $100 million contract risk protection fund is one of the most comprehensive safeguards in the industry, designed to transform market volatility from potential risks to opportunities. Through USDT settlement, the program eliminates cumbersome fund conversion links and ensures fair, efficient and transparent risk management.
As an exchange with more than 15 million users worldwide, LBank has always adhered to a user-centric innovation strategy, combining deep liquidity, top security and leading risk control mechanisms to continuously optimize the trading experience. The establishment of this fund further consolidates LBanks leading position in the crypto derivatives market and brings more trust and stability to the market.
About LBank
Founded in 2015, LBank is one of the worlds leading cryptocurrency exchanges , with more than 15 million registered users in 210+ countries and regions. The platform supports more than 800 crypto assets, with a daily derivatives trading volume of more than $67 billion, and is committed to providing a comprehensive and convenient trading experience.
As an industry leader in the Meme track, LBank has launched 240+ mainstream Meme coins and 40+ high-potential Meme projects, many of which have increased by more than 500%. With the advantage of the largest number of first-issued Meme coins in the world, LBank has become the preferred platform for Meme investors.
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